As a small business owner, you know how important it is to recognize and reward your most valuable workers. To your customers, your employees are the business, and happy employees help to create happy and satisfied customers. Service awards and other recognition programs can be valuable, but it is important to tread carefully.

Loyalty Generation

Providing awards for outstanding service is one of the best ways to encourage loyalty on the part of your workers. Employees who feel they are appreciated and valuable members of the team are less likely to jump ship when a better opportunity arises. A simple pat on the back or an award certificate for a job well done makes workers feel valued, and that can foster loyalty, teamwork and cooperation. According to a 2005 study by the Incentive Foundation, building employee loyalty plays a major role in a given company's decision to create an awards and recognition program.

Low Cost

Chances are that every worker on your staff would like a raise, but it is unlikely the budget allows for across-the-board salary increases. Company awards and recognition programs provide a low-cost way for business owners to show their appreciation, without endangering the profitability or growth of the firm. Employee service awards do not have to be elaborate. Something as simple and inexpensive as a framed certificate, signed by the president of the company, can be a reward for a job well done.

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Possible Resentment

Recognizing the accomplishments and achievements of your best workers can have some unintended consequences. One of the most significant risks of an employee service award program is resentment on the part of workers who are not singled out for praise. Managers need to walk a fine line when the reward their employees so not to be accused of playing favorites or ignoring the contributions of other employees.

Longevity Versus Accomplishments

Employee service awards that focus solely on how long a worker has been with the company often miss the mark. While tenure is certainly important, an employee service award program should recognize achievements, as well as longevity.

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About the Author

Based in Pennsylvania, Bonnie Conrad has been working as a professional freelance writer since 2003. Her work can be seen on Credit Factor, Constant Content and a number of other websites. Conrad also works full-time as a computer technician and loves to write about a number of technician topics. She studied computer technology and business administration at Harrisburg Area Community College.